Some European steelmakers are pushing up rebar prices by around €60/tonne ($63) on average compared to the beginning of the month, with immediate effect, Kallanish learns from market participants.
Mills are pushing up values in France, Spain and Germany due to the current unsustainable price levels that allow for practically no margin. Steelmakers in Europe are facing high energy and raw material costs, as well as lower consumption of rebar, which is particularly hitting Germany (see separate story). Rebar producers who have not yet implemented increases are also seen following in the coming days. In Spain, some suppliers are said to be pushing up prices but the market is responding sluggishly.
“If raw materials and scrap remain at the current price levels, rebar will have to increase or mills will be forced to stop production,” a source comments. Steelmakers throughout Europe are beginning to produce at a loss and cutting output to balance demand and supply. However, idling plants entails increasing costs that will impact this year’s financial results.
The Spanish rebar market has not shown an improvement in activity this month. Prices remain unchanged after the summer holiday period, while demand remains practically non-existent. In France and Germany, there is similar market stagnation.
French distributors tell Kallanish they welcome the hike move and will support it.
Natalia Capra France